Would-be homeowners who are not seeing meaningful gains in their pay cheque might be better off changing jobs.
With affordability continuing to be challenged by rising home prices and mortgage rates, while wage gains are lagging, a new survey shows that many Canadian employers are prioritizing higher wages for new recruits.
Although employers say that there are challenges in both finding and retaining workers, the poll from Hays Canada suggests they are only hiking pay for new hires.
"From an employer's perspective, the job market is extremely competitive and without the right people in place, next year's business goals could end up in doubt. So, employers have curtailed spending on existing staff in favour of getting new candidates through the door,” said Rowan O'Grady, President of Hays Canada.
The research shows that less than a quarter of respondents plan to give salary raises greater than 3% to existing staff despite 66% saying the economy is boosting their bottom line.
Meanwhile, 61% admit they have hiked salaries to attract candidates even at the risk of potentially losing current staff.
“The intent may come from a good place, but this is a band-aid solution for a complicated challenge. Without taking a more holistic view of staffing or having smart support and advice, further workforce problems are all but inevitable," added O’Grady.